Areas where care homes cost double for self-funders – is YOURS on the list?

Care seekers are increasingly being left with no choice but to fund help themselves as the social care means testing threshold remains frozen and costs continue to grow.

The vast majority of care seekers in the UK are self-funding, with some 66 per cent paying for their own care, compared with just 16 per cent of people reporting they were able to access care funding from their local authority.

People with assets worth more than £23,250 have to fully fund their own care, and others will have to contribute to their care costs unless their assets are worth less than £14,250.

These thresholds were set way back in 2010, with £23,250 in 2010 now equivalent to £35,805 when adjusted for inflation.

With staffing, infrastructure and resource costs continuing to increase, care home fees have risen for the 2025/2026 financial year.

As many as one in seven independent nursing homes now charge over £1,800 per week, according to LaingBuisson data.

Hannah Karim, lead care expert at Online Care Finder Lottie, said: ‘Each year care operators increase their care fees to cover the increasing cost of running a care home such as resources, energy bills and infrastructure. 

‘However, in recent years the increased cost has been much higher than previously.

‘For example, the predicted increased costs for running a care home from 1 April 2025 averages £158,323.96 a year before additional costs such as increased energy bills, utilities and everyday essentials are considered due to rising employer contributions.’

With fees rising, the disparity between how much self-funders are forced to pay in care fees and what local authorities pay continues to grow.

In some areas, self-funders are paying almost twice as much as those funded by the council, according to data from Lottie.

The starkest divide seen by the firm was in Solihull in the West Midlands, where the average care cost for a self-funder is £1,358 per week, £585 more than the standard fee of £773 per week that the area’s council pays to care providers for someone who qualifies for financial support.

Over the course of a year, this equates to £70,616, compared to a local authority cost of £40,196.

Likewise, in Blackpool, self-funders pay out an average of £1,166 per week, some £566 more than the £600 paid by the local authority.

In Manchester the disparity was £529, with those self-funding paying £1,295, while in Cornwall the disparity was £476, with the council paying as much as £1,002 per week on average, but self-funders paying £1,478 per week.

Karim added: ‘With costs rising, many care operators are having to make tough decisions, last year one in seven care providers reduced the level of service they offer. 

‘While many local councils are raising fees to help offset rising costs, these increases still fall short of the overall growth in care expenses over the past decade. 

‘As a result, the extra financial burden is being passed on to self-funding residents, leaving those who pay for their own care particularly vulnerable to higher charges.’

Karim says 65 per cent of those looking for elderly care are struggling to be able to pay for the services they need.

She added: ‘The financial burden on families seeking care is becoming overwhelming. 

‘Every day, we hear stories from individuals struggling with the challenges of funding care for their elderly loved ones. 

‘Many are forced to make difficult decisions, often looking to sell their homes or dipping into personal savings, just to afford essential support.

‘With an ageing population the government must act sooner to support families in accessing care to ensure affordable and sustainable care options remain available for all.’

I was forced to sell my parents’ home to fund care

One care seeker, 60-year-old Sarah, whose parents are in care in Oxfordshire, told This is Money her parents’ residential care home informed her that they would be increasing their annual fees by more than £21,000 for her parents combined.

The increase would mean paying out £174,773.60 per year for her parents’ care, and increase of 13.85 per cent on the £153,600, she was paying previously.

The care home gave 28 days’ notice of the change, Sarah said, but argues that this wasn’t enough time for her to negotiate on price.

She said: ‘This is the third care home I have had an experience with and there doesn’t seem to be a clear set standard increase across the sector and the lack of transparency has left me feeling confused and frustrated.’

Instead, Sarah felt forced to relocate her parents to a new care home with lower fees.

Sarah had sold her parents’ house in order to fund their care fees, meaning that she felt she had to make sure the money was put to good use.

She said: ‘I had to sell my parents home to fund their care, and promised them I would make every penny count, so with this in mind, we decided to look into new care home options.’

She added: ‘It has been a stressful decision to uproot my parents and move them to a new care home. 

‘This has been especially concerning because I am worried about the impact the change in environment would have on my parents’ wellbeing, not just getting used to a new environment but also to new faces at the home and people providing care.’

Even prior to the increase in fees, the care home in question had been reducing its services.

Sarah told This is Money: ‘Over the years, I’ve noticed that additional costs have been introduced for services that would have traditionally been included in the weekly care fee. 

‘For example, items like toiletries such as toothpaste and shower gel, podiatry appointments, and hairdressing have now started to be billed separately.’

These extra charges meant that the £1,600 fee was just part of what she was paying.

She said: ‘One specific charge I have been paying monthly is for toenail cutting appointments for both my parents, which cost £40 per month.’

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